Pound stretcher

A SLIDE in the value of the pound has suddenly left British travellers with less spending power - especially on the Continent. But experts say a handful of holiday hotspots remain cheap.

Brits were basking in sterling's strength last year. But with the previously weak euro finding its feet - it has surged nearly 10% against the pound in six months - the Mediterranean is dearer for holidaymakers.

However, mercenary tourists willing to find countries in economic strife - therefore with weak currencies - can find some bright spots. This Is Money, as part of a regular feature, has asked Royal Bank of Scotland to do the hard work for you.

Its researchers have found holiday places that have endured the worst currency slide. 'It's travellers who visit long haul or exotic destinations like Brazil, Thailand and the Caribbean feeling the benefit at the moment,' says Robin Cockburn, head of global travel money services at RBS.

Visitors to Rio are finding their pound buys 60% more reals than a year ago, and in the popular winter resorts of Gambia, Brits have 47% more spending power. Other weak currencies include the Turkish lira, down 32%, the Jamaican dollar, down 30%, and the Thai baht [correct], down 10%.

Travellers to the US, Canada, Australia and New Zealand also continue to pick up a bargain, although the Oz and Kiwi dollars have mounted a modest recovery in recent months. Cockburn also points out that the South African rand remains weak, but it too is off lows seen late last year.

The latest Worldwide Cost of Living survey, conducted by the Economist, ranks 134 cities on expense. It put London in seventh place and Manchester in 22nd. Compared that to Rio which was 120th and Argentina's Buenos Aires was 130th - a plunge from 21st place a year earlier. Economic woes have dogged the region for two years. Other cheap locations were Cairo at 97th, Budapest in Hungary at 106th and South Africa's Johannesburg at 124th.

The weakness of the Canadian and New Zealand currencies was reflected in 70th place for Vancouver and 89th place for Auckland.

As for cheap weekend breaks closer to home, Prague ranked 85th and Lisbon was in 71st place, making it the cheapest European Union city.